Rebalancing

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Rebalancing

Realigning the proportions of assets in a portfolio as needed.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Rebalancing

The act of changing the percentages of different types of securities in a portfolio, especially according to changes in one's investment goals. Most portfolios are diversified to a greater or lesser degree; that is, they contain different types of securities in different proportions. If one's investment goals change (or if the portfolio is not meeting them satisfactorily), one rebalances the portfolio in order to achieve them. For example, if a portfolio is half bonds and half stocks and an investor wishes to have lower risk, he/she might rebalance the portfolio to be three quarters bonds and one quarter stocks.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
For instance, if you don't rebalance during a stock-market decline, when stocks reach their bottom and start to rebound, the portfolio won't perform as well as it would've if you had rebalanced. This is because the percentage allocated to stocks in the portfolio gets smaller as stock prices fall.
According to Bekim Fazliu from PDSH, this rebalanced budget, as all the others before, ethnically discriminates by offering Macedonians welfare and ghettoizing Albanians increasingly more.
Summary: WASHINGTON, Jumada II 23, 1432, May 26, 2011, SPA -- U.S.-China economic ties must be rebalanced through implementation of Chinese market opening pledges that end the pattern of "China making and the United States taking," Commerce Secretary Gary Locke told a U.S.
Then, managers either revisit that mix at fixed intervals (monthly, quarterly, yearly) and buy and sell to bring it back into line, or create triggers -- a fixed range, usually within 5% to 10% of the original mix for each asset class -- outside of which the portfolio has to be rebalanced.
He has just rebalanced it to match his current risk appetite and desired asset allocation.
In his paper, we have examined he CPPI method when portfolio is rebalanced according to investor's tolerance with respect to the target multiple.
The budget will be rebalanced in early June, said Finance Minister Zoran Stavreski.
Barry Callebaut has developed a unique range of chocolate products that offers an improved, rebalanced nutritional profile.
Independent sensory tests show that our rebalanced ice cream systems can help light brands perform as well as leading indulgence brands in key attributes.
Tate & Lyle point to independent sensory tests that show its rebalanced ice cream systems can help light brands perform as well as leading indulgence brands in key attributes.
The company said 30 constituents of the Index will be rebalanced, effective on September 19, 2016.